Despite the struggles that a pandemic has wrought on the real estate industry, South Florida continues to thrive. Luxury real estate, specifically that in Boynton Beach, has directly benefitted in multiple ways over the past year.
Baby boomers, having been born between 1946 and 1964, are now between the ages of 54 and 74. Therefore, many people of this generation are looking to retire. It is no secret that Florida is one of the more favorable places for people to retire. The warm weather and resort lifestyle initially attract attention while the favorable tax climate makes it a financially sound decision.
Northern State Taxes
The state and local tax (SALT) deduction make it so that those in high-tax states can deduct their income and property taxes on their federal tax returns. In the past, there was no limit on how much could be deducted. However, with the implementation of the Tax Cuts and Jobs Act (TCJA), no more than $10,000 may be deducted. To escape this new tax change, many people who live in high-tax states (usually those in the north) are moving to southern states such as Florida.
Many adults living in cities reported that they were considering moving to less populated areas as a direct result of COVID-19. Young adults, aged 18-29, reported wanting to move because of the pandemic more so than any other age group. 28% of those surveyed reports having moved to reduce their risk of contracting the virus, 20% moved because their college campus shut down, and 18% say that it was due to financial trouble.
While COVID-19 may have slowed down some aspects of life, the real estate industry in South Florida continues to progress. As a full-service real estate agency working in South Florida with some of the top agents in the business, Posh Properties works with buyers, sellers, and investors. Contact us today at 561-537-0050 to find out how we can help you with your real estate goals.